Trump Imposes Forced Labor Tariffs on 60 Nations as Temporary Duties Expire

Quick Facts

New forced labor tariffs of 10% and 12.5% took effect at 12:01 a.m. EDT on July 24, covering 60 trading partners and 99.4% of U.S. imports.
The duties replace a temporary 10% global tariff imposed under Section 122 of the Trade Act of 1974, which expired the same day.
Countries that have committed to enforcing forced labor import bans face 10%; all other investigated economies face 12.5%.

The Trump administration imposed new import tariffs on goods from 60 trading partners Friday, replacing expiring temporary duties with a new legal framework built on forced labor enforcement allegations. The tariffs, announced in a Federal Register notice, took effect at 12:01 a.m. EDT on July 24. Goods already in transit are exempt until 12:01 a.m. EDT on July 28.

The administration used Section 301 of the Trade Act of 1974 as the legal basis. That law allows the president to impose tariffs on countries found to engage in unjustifiable, unreasonable, or discriminatory trade practices. Trump used Section 301 against China during his first term, and those tariffs survived court challenges.

Who Pays What

Countries that have committed to or already enforce a forced labor import ban face a 10% rate. These include Argentina, Bangladesh, Cambodia, Canada, India, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka, the United Kingdom, and others. All remaining investigated economies face a 12.5% rate.

The European Union, Japan, South Korea, Taiwan, and Switzerland receive rates that, combined with existing most-favored-nation tariffs, total either 10% or 12.5%. The remaining 38 countries fall into the 12.5% category. Product exemptions include oil and gas, fertilizer, and certain food items.

Why This Matters for Brands and Retailers

The new duties land on top of an already compressed supply chain environment. Scott Nova, executive director of the Worker Rights Consortium, warned that rising financial pressure on suppliers historically correlates with increased labor abuses. “Brands have been squeezing suppliers for decades, and tariffs exacerbate a deeper problem,” Nova said. “Brands’ pricing practices perpetuate labor abuse, rendering their own labor rights promises meaningless.”

U.S. Trade Representative Jamieson Greer framed the action as both a human rights and trade correction. “The United States has had a forced labor import ban for nearly a century, and rigorously enforces it,” Greer said. “It’s well past time for our trading partners to do the same.”

The Legal Path That Got Here

The new tariffs are the latest move in a months-long effort to rebuild a durable tariff structure after the Supreme Court ruled in February 2026, by a 6-3 vote, that the International Emergency Economic Powers Act does not authorize sweeping tariff powers. IEEPA tariffs had accounted for roughly 70% of the total U.S. tariff architecture at the time.

Trump responded with a 150-day, 10% stopgap tariff under Section 122 of the Trade Act of 1974. USTR launched Section 301 forced labor investigations on March 12, 2026. The agency received over 1,600 written comments and heard testimony from more than 100 witnesses at public hearings held July 7 through 9. Friday’s action replaced the Section 122 duties as they expired.

Treasury Secretary Bessent said combining Section 122, Section 232, and Section 301 tariffs “will result in virtually unchanged tariff revenue in 2026.”

Trading Partners Push Back

Major partners including the EU, Australia, and Brazil rejected the tariffs as unjustified. EU Foreign Policy Chief Kaja Kallas told Reuters that the forced labor framing does not hold up when comparing EU and U.S. labor standards. “We have paid vacations, we have very good labor conditions for our employees, so it’s not really grounded,” she said.

Canadian Prime Minister Mark Carney said Canada would not respond preemptively but signaled readiness to act. “Everything is on the table depending on the outcome of the negotiations,” Carney said.

More tariffs are likely coming. USTR has launched a separate probe into whether 16 countries, which account for 70% of U.S. imports, have overproduced goods in ways that disadvantage U.S. companies. Additional Section 301 actions could follow from that investigation.